Tim is a 40 percent general partner in the TC Partnership. The partnership's records for the current year show the following: Sales revenue $600,000 Guaranteed payment to Tim $35,000 Cost of goods sold Operating expenses 460,000 32,000 Interest income from corporate bonds 12,500 Business entertainment 1,500 Tim's basis in the partnership was $78,000 at the beginning of the year. During the year, Tim's share of partnership liabilities increased by $40,000. The partnership made cash distributions totaling $20,000 during the year to Tim. What is Tim's basis in the partnership at the end of the year? Show work for partial credit.